Problem 23-3 Total assets 52,805 $1,850 Sandlhill Compary has not yet prepared a formal statement of cash flows for the 2017 fiscal year. Comparative balance sheets as of December 31, 2016 and 2017, and a statement of income and retained eamings for the year ended December 31, 2017, are presented as follows. Liabilities and Stockholders' Equity Current liabilitie: SAND.L COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARENDED DECEMBER 31,2017 Accounts payable Income taxes payable Notes payable 5436 5320 30 310 310 Total current liabilitiea $000 ON 180 970 180 840 Long-term notes payable -due 2019 Sales reveue $3,830 Total liabilities Stockholders' equity Cost of goods sold Salaries and benefits Heat liaht, and powe 51,190 740 80 80 20 30 1,295 690 320 1,835 1,010 $2,805 $1,850 Common stock Retained eamings Total stockholders' equity Total liabilities and stockholders' equiry Property taxes Patent amortization Miscellaneous expenses Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. Show amounts in dhe investing and financing sections that decrease cash flow with either a-sign eg. -15,000 oin parethesis &g. (15,000)) 30 2,180 1,650 Income before income taxes Income taxes Net income Retained earnings-Jan. 1, 2017 825 320 1,145 605 S540 Stock dividend declared and issued Retained eamings-Dec 31. 2017 COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 $000 OMITTED) 2017 2016 Current asgets S345 90 U.S. Treasury notes (available-for-sale) Accounts receivable 760 500 720 550 1,835 1,190 Total current assets Long-term assets 160 Buildings and equipment (190) (110) Patents less amortization) Total long-term assets 80 970 110 660